Time to get ready for IRS

This year is the first time I have painted full time. I have a long list of art related expenses* to balance against sales but I'm not sure what is acceptable to IRS. Can anyone point me to a place on the internet or in the library that does a good job advising artists on tax deductions. I've been told that The IRS loves to chase after artists for audits but they are so understaffed I doubt they would bother me but I'd like to be legit anyway. All of what I've found so far is fairly vague.

G.

* canvas, paints, brushes, special equipment, books and mags, photography expenses, studio classes, travel expense, mood drugs, new stereo equipment, etc(just kidding about the last two)

Gordon -

I've made part of all of my living as an artist for many years. Here is the best advice you'll ever get: hire a good accountant (a CPA) and listen to his or her advice. Any other way of doing it is a waste of time and can get you in trouble with the IRS. It is well worth the fee.

Hi Gordon;

Have you tried using something like the Intuit products to prepare your return? (e.g. QuickTax Home & Business edition). The software I used up until this year (a Canadian product called CanTax) provided all the definitions, etc. necessary to determine where and how you allocate your deductions, and what is allowed. They also greatly simplify the carry forwards for items that are amortized over a number of years. FWIW, I'm using Intuit's Canadian version of QuickTax Home & Office this year, and they seem to be pretty good also.

I agree with what Dan posted (that a CPA is probably the best way to go, if they know the ins & outs of arts tax reporting), but doing it oneself is alot cheaper - especially if (like me) your filing system consists of a shoe box - and it's probably better than a CPA who is not familiar with tax laws w/r to the arts. Doing it oneself also allows some experimentation, which is useful when determining when some deductions (like retirement plan contributions) can be best taken.

Good luck (and remember that Canada has extradition agreements with the US, so don't head for this border when the IRS comes knocking